Changes in the New Congress Could Impact Pace of Bankruptcy Reform Legislation

<p>As predicted, President Clinton vetoed the bankruptcy bill as Congress finally headed
out of town in December, leaving proponents to renew their efforts in the 107th
Congress. Though the new president is more favorably disposed to the legislation, this
may not be true of the new Senate, where a unique "power-sharing" arrangement exists
on all committees as a result of a 50-50 Republican-Democrat split. In the
Senate, lead sponsor Charles E. Grassley (R-Iowa) has moved on to chair the
Finance Committee, leaving the bankruptcy subcommittee chair to Sen. Jeff Sessions
(R-Ala.). Sen. Sessions is a strong supporter of the legislation, but it's not
clear who will serve as the ranking Democrat. This is key to whether the bill moves
quickly in the sharply divided Senate.

</p><p>In the House, the new chair of the Judiciary Committee, F. James
Sensenbrenner (R-Wis.), has identified bankruptcy as one of the issues he intends
to move, but Rep. George W. Gekas (R-Pa.), the former lead sponsor of the
bankruptcy bill in the House, has been term-limited from chairing the bankruptcy
subcommittee. The turnover in personnel in the Senate and House may mean that the
legislation may not move as quickly as it otherwise might.

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